Perfect competition is the term used to describe:

Question

Quizplus · Accepted Answer

Perfect competition is characterized by numerous firms, each producing an identical product, and none having any market power to influence price. This leads to price-taking behavior by firms, where they must accept the market price for their product. Option A refers to an oligopoly, where a few large firms dominate the industry, while option C describes monopolistic competition, where firms are able to differentiate their products to some degree. Option D is incorrect, as perfect competition assumes that firms are price takers, not price makers.

Perfect Competition Is the Term Used to Describe